Infrastructure challenges of rail transportation in the path of development.
Rusty rails, trains waiting; DotOne Rail, a bold and agile driver of development.
Transformation in rail infrastructure is not just a slogan, but a necessity, and this transformation will only be realized through courage, smart decisions, effective collaboration between the government and the private sector, and avoidance of bureaucratic and time-consuming administrative processes. This is because investment in rail transportation goes beyond the development of tracks and stations; it is the main and key driver for increasing economic productivity and moving towards sustainable transportation.
In this context, the railway, by developing operational plans and strategies and supporting private sector investors, not only plays a key role in reducing transportation costs, lowering environmental pollutants, and increasing economic productivity, but also, in collaboration with the private sector, can achieve balanced and sustainable development across different regions.
However, the condition of rail infrastructure in some regions of the country highlights fundamental issues. Tracks that have been deprived of innovation and investment for years, wagons and locomotives that are not returning to the active fleet due to a lack of resources, and projects that are caught between the promises of officials, a lack of trust in private investors, and a shortage of funding.
Therefore, while rail transportation is recognized as one of the most effective tools for economic development, many of the country's rail routes face challenges such as deterioration, lack of investment, and execution problems. Thus, the fundamental question at this moment is: is there anyone who will drive the train of rail development forward?
Global Experience, a Guiding Light for Domestic Growth in the Rail Industry**
Rail transportation has long been recognized as a vital artery of national economies, and global experience has shown that genuine cooperation between the public and private sectors has not only attracted investment and advanced modern technologies, but also laid the groundwork for creating flexible infrastructure that can respond to future needs. Based on this, bold decision-making, a focus on practical measures, and moving beyond traditional frameworks are the keys to achieving an efficient, sustainable, and future-oriented rail network.
In our country, rusted rails stretching toward the horizon are numerous—remnants of a bygone era that now lie silent, awaiting attention; attention that has been delayed for years, and investment that could rescue them from stagnation and neglect. These worn-out infrastructures have not only slowed the pace of progress but have also put economic opportunities and sustainable transportation out of reach.
Meanwhile, smart investment and collaboration between the government and the private sector can revive the railway network and fleet—a revival and transformation that demand courage and boldness. The time has come to stop waiting and start making practical decisions to regenerate these vital infrastructures.
The deterioration of the rail industry: both a challenge and an opportunity.
As mentioned, many of the country's rail routes and fleets have become outdated. This not only increases maintenance costs but also reduces the speed and safety of trains. While some emphasize the need to modernize tracks, wagons, and locomotives, others believe that by creating new opportunities—such as innovative investment models—the private sector can play a more significant role in reviving this infrastructure and add a reasonable pace to the otherwise slow progress of rail development. But have current policies created a suitable environment for attracting investment? The answer is no—although recently, the government has shown more interest in empowering the private sector.
Private investment: the missing link in rail development
One of the main reasons for the halt in modernization and expansion projects of the rail network is the lack of sustainable financing. Inadequate supportive policies, the absence of incentive mechanisms to attract private and foreign investment, the lengthy process of obtaining executive permits, and time-consuming administrative bureaucracy in Iran have caused many projects to remain at the study stage. Meanwhile, countries that have been successful in developing rail transportation have implemented public-private partnership (PPP) models, but in Iran, this model is still in its early stages of implementation.
Who will push the train of future development?
As mentioned in the previous lines, for the train of railway industry development to move forward, there is a need for a shift in macro-level policies, increased collaboration between the public and private sectors without bias and reactive assumptions, and the adoption of creative solutions for project financing. Establishing railway investment funds with active private sector participation, reforming investment attraction laws and support mechanisms, and developing international collaborations are among the solutions that can serve as the driving force for the development of the country's railway sector.
Meanwhile, according to the urgent needs of the people of Iran, both freight and passenger trains are still waiting at the station, and the delay in this movement calls for streamlining efforts to free rail transportation from stagnation.
Investment in rail infrastructure: from promise to implementation.
The powerful start of DotOne Rail with the largest private sector investment.
DotOne Rail is not only playing a significant role in providing new fleets but is also paving the way for sustainable development in the country by making a \$713 million foreign investment in the production of 300 diesel multiple unit (DMU) trains, 50 locomotives, and 600 tank wagons. These actions demonstrate the company’s commitment to enhancing rail transport capacities and reducing dependence on imports.
Therefore, considering the emphasis of the Supreme Leader on the development of rail transport in Paragraph 25 of the Sixth Development Plan, especially in the cargo sector with a focus on equipping the network and cargo terminals, and connecting the network to major economic, commercial, and industrial centers as well as key entry and exit points of the country and regional and global rail networks such as the North-South and East-West corridors, and the policymakers' efforts to increase the share of rail transport in the movement of goods and passengers, DotOne Rail has paved the way for the growth of this industry through public-private partnership models and the utilization of advanced technologies.
This company, as part of the DotOne value-creation group, in collaboration with the Islamic Republic of Iran Railways and other stakeholders, not only contributes to the development of the fleet now and in the future but will also play a key role in optimizing fuel consumption and increasing efficiency. Therefore, it can truly be said that, in a time when the rail development train of the country requires a powerful driving force, DotOne Rail, with its investment, innovation, and commitment to progress, has taken the first steps to lead this path and elevate the rail transport industry to its rightful place.
The requirements for achieving the deserving position of the railway industry.
Achieving the deserving position of the railway industry requires a combination of targeted investment, technological innovations, and supportive policies that can bring about real transformation. Key actions and requirements for the railway industry include the development of modern infrastructure. The restoration and improvement of existing railway lines, the use of new technologies to enhance productivity, and the expansion of smart and high-speed railway routes are among the measures that can elevate the position of the railway industry.
Strengthening public-private collaborations is more important than any other parameter in the development of this vital industry. Investment in this field must be accompanied by active participation from the private sector, so that commercial innovations and efficient management can contribute to sustainable development. At the same time, creating economic incentives and reducing bureaucratic barriers can increase the attractiveness of investment.
On the other hand, it is essential for the rail network to move towards digitalization and smart technologies. This is because the use of data, intelligent management, and active automation in the maintenance and repair of rail lines can help reduce costs and increase efficiency.
Meanwhile, according to the current environmental needs and slogans in the transport industry, transitioning towards green rail transport using clean energy and developing electric trains can not only help reduce pollution but also attract international support for sustainable development. This is an opportunity that the private sector with capital can realize. Therefore, it can be said that achieving a dynamic and competitive rail industry requires agile and bold decision-making, strategic investment, and actions beyond slogans, as the time to move towards the future is now.